1. Jan.Hoffmann@UNCTAD.org Geneva, May 2008 Trade Facilitation: Why we need it, and what it means for development

2. TRADE FACILITATION Process of eliminating all unnecessary elements and duplications in formalities, processes and procedures Simplification Harmonisation Alignment of national procedures, operations and documents with international conventions, standards and practices. Standardisation Process of developing internationally agreed formats for practices and procedures, documents and information.

3. TRADE FACILITATION Standardisation Process of developing internationally agreed formats for practices and procedures, documents and information.

4. International rules and standards IMO ISO UN-CEFACT WCO WTO

5. UN Lay-out Key (UNECE Rec.#1)

6. TRADE FACILITATION Process of eliminating all unnecessary elements and duplications in formalities, processes and procedures Simplification Harmonisation Alignment of national procedures, operations and documents with international conventions, standards and practices. Standardisation Process of developing internationally agreed formats for practices and procedures, documents and information.

7. TRADE FACILITATION Harmonisation Alignment of national procedures, operations and documents with international conventions, standards and practices.

10. TRADE FACILITATION Process of eliminating all unnecessary elements and duplications in formalities, processes and procedures Simplification Harmonisation Alignment of national procedures, operations and documents with international conventions, standards and practices. Standardisation Process of developing internationally agreed formats for practices and procedures, documents and information.

11. TRADE FACILITATION Process of eliminating all unnecessary elements and duplications in formalities, processes and procedures Simplification

14. More details: www.gfptt.org

15. 10 global trends Trade facilitation measures Implications for development Trade Facilitation: Why we need it, and what it means for development

16. 10 global trends Trade facilitation measures Implications for development Trade Facilitation: Why we need it, and what it means for development

17. 1. Exports of manufactured goods Today 80% of developing countries’ exports are manufactured goods, up from only 20% two decades ago

18. 2. Globalized production About 1/3 of global trade is intra-company trade Around 30% of trade is trade in components and unfinished goods

19. 3. Increased security concerns Security measures along the entire supply chain

20. 4. New Geography of Trade Especially the share of South-South trade has doubled since 1990

21. 5. Regional integration Increased regional and transit trade

22. 6. Within Logistics expenditure …inventory holding decreases, and Transport expenditure increases Data for USA, via DOT

23. 7. Technologies Containerization, shipping networks Use of computers and Internet

24. 8. Privatizations / concessions Ports, Shipping lines, Railways, Airlines, Airports

25. 9. Tariff reductions For most developing countries’ exports, international transport costs are 2 to 3 times higher than Customs tariffs on imports in developed countries. Source: Miccio/ Perez 2002

26. 10. Negotiations on trade facilitation at the World Trade Organization

27. 1. Manufactured goods 2. Globalized production 3. Security concerns 4. Trade geography 5. Regional integration 6. Logistics 7. Technologies 8. Privatizations 9. Tariff reductions 10. WTO negotiations

28. 10 global trends Trade facilitation measures Implications for development Trade Facilitation: Why we need it, and what it means for development

29. 1. Manufactured goods 2. Globalized production 3. Security concerns 4. Trade geography 5. Regional integration 6. Logistics 7. Technologies 8. Privatizations 9. Tariff reductions 10. WTO negotiations

30. 1. Manufactured goods 2. Globalized production 3. Security concerns 4. Trade geography 5. Regional integration 6. Logistics 7. Technologies 8. Privatizations 9. Tariff reductions 10. WTO negotiations advance ruling, pre-arrival clearance

31. 1. Manufactured goods 2. Globalized production 3. Security concerns 4. Trade geography 5. Regional integration 6. Logistics 7. Technologies 8. Privatizations 9. Tariff reductions 10. WTO negotiations authorized traders

32. 1. Manufactured goods 2. Globalized production 3. Security concerns 4. Trade geography 5. Regional integration 6. Logistics 7. Technologies 8. Privatizations 9. Tariff reductions 10. WTO negotiations Risk analysis, advance information 3. Security concerns

33. 1. Manufactured goods 2. Globalized production 3. Security concerns 4. Trade geography 5. Regional integration 6. Logistics 7. Technologies 8. Privatizations 9. Tariff reductions 10. WTO negotiations Internet publication, Language of publication 1. Manufactured goods 2. Globalized production 3. Security concerns 4. Trade geography

34. 1. Manufactured goods 2. Globalized production 3. Security concerns 4. Trade geography 5. Regional integration 6. Logistics 7. Technologies 8. Privatizations 9. Tariff reductions 10. WTO negotiations Regional enquiry points 5. Regional integration

35. 1. Manufactured goods 2. Globalized production 3. Security concerns 4. Trade geography 5. Regional integration 6. Logistics 7. Technologies 8. Privatizations 9. Tariff reductions 10. WTO negotiations Separate release from clearance

36. 1. Manufactured goods 2. Globalized production 3. Security concerns 4. Trade geography 5. Regional integration 6. Logistics 7. Technologies 8. Privatizations 9. Tariff reductions 10. WTO negotiations 7. Technologies Automated payments, Electronic documents

37. 1. Manufactured goods 2. Globalized production 3. Security concerns 4. Trade geography 5. Regional integration 6. Logistics 7. Technologies 8. Privatizations 9. Tariff reductions 10. WTO negotiations Customs to accept commercial information, information platforms

38. 1. Manufactured goods 2. Globalized production 3. Security concerns 4. Trade geography 5. Regional integration 6. Logistics 7. Technologies 8. Privatizations 9. Tariff reductions 10. WTO negotiations Transport costs and trade facilitation more important than tariffs !

39. 1. Manufactured goods 2. Globalized production 3. Security concerns 4. Trade geography 5. Regional integration 6. Logistics 7. Technologies 8. Privatizations 9. Tariff reductions 10. WTO negotiations … a response to trends in international trade, transport, logistics and technologies !

40. 10 global trends Trade facilitation measures Implications for development Trade Facilitation: Why we need it, and what it means for development

41. “Aid for Trade”

42. Trade and Transport Facilitation is not only good for trade but also has other positive side effects The introduction of ICTs by Customs may encourage smaller companies to also connect to the internet.

43. Trade and Transport Facilitation is not only good for trade but also has other positive side effects (cont.) Capacity building raises the country’s overall human capital.

44. Trade and Transport Facilitation is not only good for trade but also has other positive side effects (cont.) A framework for bank guarantees for transit trade may also generally improve the financial system.

45. Trade and Transport Facilitation is not only good for trade but also has other positive side effects (cont.) A single window experience for trade may help to introduce single windows elsewhere.

46. Trade and Transport Facilitation is not only good for trade but also has other positive side effects (cont.) Reforms of legal regimes that facilitate the use of electronic documents may also modernize other business practices.

47. Trade and Transport Facilitation is not only good for trade but also has other positive side effects (cont.) Mechanisms to consult with stake holders may be beneficial for other policy decisions as well.

48. Trade and Transport Facilitation is not only good for trade but also has other positive side effects (cont.) Increased transparency is good for good governance in general.

49. Trade and Transport Facilitation is not only good for trade but also has other positive side effects (cont.) Are poor countries poor because of red tape? OR Is red tape the result of a lack of development? ANSWER: It is both

50. Days to complete each stage of importing Region Pre-arrival documents Port and terminal handling Customs and inspections Inland transport to warehouseTotal time OECD high income822214 East Asia & Pacific1834328 Latin America & Caribbean2445336 Middle East & North Africa2559443 Europe & Central Asia2547743 South Asia24671047 Sub-Saharan Africa33810959 World2356540 Source: World Bank Doing business 2006

51. Region% of cargo inspected (import) OECD5 East Europe18 East Asia31 Latin America & Car.51 Middle East63 Africa67 South Asia69 Source: World Bank Doing Business 2006 Inspections

52. World Bank – Doing Business Report Source: http://www.doingbusiness.org/

53. E-docs and automation All docs electronic Some e-docs No e-docs Days123041 Documents589 Signatures31014 Source: World Bank Doing Business 2006

54. The “tipping point”: Start with Trade and transport facilitation Trade and transport facilitation is good for trade and for development Development is good for trade and for trade and transport facilitation

55. 10 global trends Trade facilitation measures Implications for development Trade Facilitation: Why we need it, and what it means for development